Mega Tech IPO: Asahi Marusan Management say Tencent-backed PDD eye $1.6 billion

Stocks and Financial Services Press Releases Thursday July 19, 2018 12:15
TOKYO--19 Jul--PRNewswire/InfoQuest

Asahi Marusan Management reported this morning that Chinese e-commerce operator Pinduoduo Inc which is backed by Tencent Holdings is planning to raise up to $1.6 billion during its US IPO to bolster its fight against rival Alibaba.

Pinduoduo Inc located in Shanghai, is offering 85.5 million Depositary Shares in the US with a price between $16 and $19 per share. Leading Chinese social media company Tencent and existing shareholder Sequoia Capital have equally expressed interest in buying $250 million worth of stock Asahi Marusan Management added.

Pinduoduo Inc, widely known as PDD is considered to be one of China's most powerful and fastest growing startups. Famous for popularizing a system where people see deals on a variety of products, and can recruit friends in order to get a discount of up to 20% off market prices has led this Chinese Facebook-Groupon mashup to quickly become a major rival to Alibaba.

Founded 3 years ago by Colin Huang, a former Google engineer, this startup is believed to have a top end valuation target of $30 billion, already putting it on par with on-demand services giant Meituan Dianping. Based on that, Pinduoduo Inc may very well be valued at around $20 billion after the IPO launch with Huang remaining in control most of the voting rights.

"Ongoing marketing efforts across the country mean Pinduoduo Inc have yet to turn a profit, making them one of the most ambitious tech companies to go public this year that are still making a loss," said Timothy Grant, Senior Vice Presidentat Asahi Marusan Management .

Pinduoduo Inc has handled 262 billion yuan ($39 billion) in transactions for the past year which equates to more than 300 million active buyers. This managed to gain them great growth in their April valuation. The company had a tripling of revenue for 2017 at around $278 million, but the losses are higher too, 55% higher and they are now at $79.5 million!

About Asahi Marusan Management

Asahi Marusan Management is a private wealth management company that provides access to the global financial markets for both corporate and private clients. For additional information visit www.ammsecurities.com .

Media Contact, Yoshiya Shigetoki, pr@ammsecurities.com, +81-3-4588-8294
Logo - https://mma.prnewswire.com/media/720075/Asahi_Marusan_Management_Mega_Tech_IPO__Asahi_Marusan_Management.jpg

Latest Press Release

Thai 2018 CG Score Hits Record Listed Firms Emphasizes More on Stakeholders

The 2018 Corporate Governance Report of Thai Listed Companies (CGR), conducted by the Thai Institute of Directors (IOD) with support from the Stock Exchange of Thailand (SET), showed a 'very good' result and marked a historical high at 81%. The robust...

Sonic Interfreight Pcl. Advances Its Business Potential with an Eye on Growth To Be Leader in Integrated Logistics and Supply Chain Management in ASEAN

Sonic Interfreight Pcl. (SONIC), a leading regional provider of integrated freight and logistics services, is ready to be traded in the Market of Alternative Investment (MIA) for the first time on October 19 with full confidence of positive investors'...

Bangkok Bank reports nine-month net profit of Baht 27,229 million

The Thai economy continued to grow on the back of strong exports and buoyant domestic demand. In spite of the risks from the US trade policies and retaliatory measures of trading partners, exports continued to expand given diversified export...

Siam Commercial Bank reported Baht 10.5 billion net profit for the third quarter of 2018 and Baht 33.0 billion for the first nine months of 2018

Siam Commercial Bank and its subsidiaries announced total operating income of Baht 104.4 billion, a 2.5% yoy increase, for the first nine months of 2018. This positive income growth was achieved despite the digital transaction fee waiver. Operating...

Mastercard Appoints Aileen Chew as the New Head of Market Development

Today Mastercard announced the appointment of Ms. Aileen Chew as Head of Market Development, Thailand and Myanmar. In her new role, Ms. Chew will be responsible for the expansion of cashless payments in Thailand and Myanmar, overseeing engagement with...

Related Topics